Which of the following statements is NOT TRUE about The ECONOMICORDER QUANTITY (EOQ)?

The EOQ is where Inventory Holding costs = Set up costs orOrder costs.

The EOQ is the order quantity that minimizes inventorycosts.

The EOQ tells us how much or how many to produce or purchase ata particular time.

The EOQ is the point where the sales price of the item is thelowest.

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Question 11 4 pts

If demand per day is 20 units and lead time is 6 days what isthe REORDER POINT QUANTITY?

26.

120.

240.

18.

180.

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Question 12 4 pts

TRUE or FALSE? Using the PARETO ANALYSIS to manage inventory, ifan inventory item is designated an A item it will always be an Aitem.

True.

False.

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Question 13 4 pts

Companies use CYCLE COUNTING to ____.

monitor supplier performance.

evaluate supplier lead times.

accurately determine the amount of inventory on hand.

estimate sales for the upcoming quarter.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The statement that is NOT TRUE about The Economic Order Quantity EOQ is The EOQ is where ... View the full answer